Whole Lot of Spending Going On

In 2018, the US government made history, in more ways than one. Yes, the shutdown beginning in December of 2018 marked the longest in history, but according to Bloomberg Government, spending by agencies was also the highest in history. Nearly $64.7 billion was spent on IT contracts alone in fiscal 2018, an almost 10 percent jump over 2017 spending. (Nextgov January 29, 2019)

Both defense and civilian agencies tremendously increased IT spending. Defense IT spending increased by about 12 percent, to $33.8 billion. Civilian agencies increased IT spending by about 6.6 percent, to $30.8 billion. Veterans Affairs, Treasury, State, and Education all experienced double-digit spending growth. IT spending grew in the past year in the following areas (ibid):

Tehnology services

Cybersecurity

Cloud Services

Digital Services

Software Development

Data Analytics

Artificial Intelligence

What is the takeaway from the spending increases? Our government relies heavily on its IT contractors! Expect the spending trend to continue increasing over the coming years.

Want to learn more about contracting with the government? Give us a call at 301-913-5000.